Jobless Claims Drop, But Still High

Bloomberg reports:

More Americans than forecast filed applications for unemployment benefits last week, signaling the labor market is struggling to pick up.

Jobless claims fell by 6, 000 to 422,000 in the week ended May 28, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected a drop in claims to 417,000, according to the median forecast. The number of people on unemployment benefit rolls and those receiving extended payments decreased.

Some employers may be paring their workforce to rein in labor costs at a time energy prices remain elevated, adding to concern that job creation is slowing. Economists in a Bloomberg News survey project a report tomorrow may show payroll gains weakened in May, raising the risk that consumers curb spending, the biggest part of the economy.

“The labor market is a little less robust than it was,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “This is the eighth consecutive week of claims above 400,000, so it doesn’t look like the move up was an aberration.”